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Whitehaven undeterred by mine protesters

Greg Roberts

Whitehaven Coal has declared victory over the protesters trying to halt its new mine, saying it could be selling coal from the project sooner than planned.

Production at the Maules Creek open cut mine in northern NSW began last week, and Whitehaven says the company is now free of any legal barriers to doubling its production and becoming Australia's largest independent coal company.

Maules Creek has been the target of protests and legal challenges for years, due to concerns about environmental damage and dislocation of farmers.

"We have been assailed at various fronts by people trying to be disruptive and we have managed all that very well," chief executive Paul Flynn said.

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"Despite the interventions and interest from other groups around the countryside in our progress there, we are undeterred and unabated in terms of our progress.

"We will certainly bring this project on time, if not a little better, and certainly under budget."

The $767 million project is scheduled to start selling thermal coal for energy generation into Japanese markets from March.

Whitehaven made a loss of $38.4 million in the year to June, an improvement on a $88.7 million loss in the 2012/13 year.

The improved result came as Whitehaven reduced its costs by nine per cent, and had fewer one-off costs than the prior year.

Revenue grew by 21 per cent as coal sales were higher, along with the average coal price, although prices remain close to five-year lows.

Mr Flynn said the company was focussed on returning to profitability in 2014/15.

Coal prices should improve gradually in the current year, and rise further in the years beyond, he said.

Global coal demand was still improving by 60 million tonnes a year, and current weak prices were forcing supply out of the market, Mr Flynn said.

Whitehaven's production is also expected to grow, from below 10 million tonnes in 2013/14 to 14.3 million tonnes in 2014/15.

"Coal remains the lowest cost fuel for electricity generation, underpinning its use into the future," Mr Flynn said.

Royal Bank of Canada analyst Chris Drew said the result was impressive, driven by cost cutting.

He praised the company's plans to refinance and restructure its debt once Maules Creek production ramps up in March.